JOYY Inc. Reports Strong Growth in Q3 Earnings Call

Joyy, Inc. ((JOYY)) has held its Q3 earnings call. Read on for the main highlights of the call.

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The recent earnings call for JOYY Inc. painted a picture of a company on the upswing, with a strong quarter characterized by significant growth in both ad tech and overall revenue. Despite some challenges with revenue mix and ongoing adjustments in the livestreaming sector, the company’s financial performance and strategic outlook for 2026 suggest a positive trajectory for continued growth.

Strong Quarter for Ad Tech Platform

BIGO Ads, JOYY’s ad tech platform, was a standout performer this quarter, accelerating top-line growth. Total ad revenue grew impressively by 19.7% quarter-over-quarter and 33.1% year-over-year, reaching $104 million. This growth underscores the platform’s increasing importance to JOYY’s overall revenue stream.

Overall Revenue Growth

JOYY Inc. reported total revenue of $540 million for the third quarter, marking a 6.4% increase quarter-over-quarter. This growth reflects the company’s ability to capitalize on its diverse revenue streams and strategic initiatives.

Livestreaming Revenue Recovery

The livestreaming segment showed signs of recovery, with revenues reaching $388 million, up 3.5% quarter-over-quarter. This marks the second consecutive quarter of sequential growth, indicating a positive trend in this key business area.

Cash Flow and Shareholder Returns

Operating cash flow for the quarter was robust at $73 million, with JOYY maintaining a strong net cash position of $3.3 billion. This financial strength supports ongoing shareholder returns, including $88.6 million repurchased under the share buyback program.

Growth in Non-GAAP Financial Metrics

JOYY’s non-GAAP financial metrics showed solid growth, with operating income reaching $41 million, up 16.6% year-on-year. Non-GAAP EBITDA also increased by 16.8% year-on-year and 4.9% quarter-over-quarter, reflecting the company’s operational efficiency.

Positive Outlook for 2026

The company expressed optimism for 2026, expecting continued growth in its ad tech and SaaS businesses. JOYY anticipates double-digit revenue growth across multiple dimensions, driven by strategic expansions and enhanced AI capabilities.

Shift in Revenue Mix

A shift in revenue mix was noted, with an increased contribution from lower-margin network ad revenues slightly impacting BIGO’s gross margin. This adjustment is part of the company’s broader strategy to diversify its revenue sources.

Continued Focus on Streamer Incentives

JOYY is making ongoing adjustments and restructuring in streamer incentives and content quality as part of its recovery efforts in the livestreaming business. These efforts are aimed at enhancing the overall quality and appeal of its streaming platform.

Forward-Looking Guidance

Looking ahead, JOYY Inc. provided optimistic guidance for future growth. The company expects Q4 revenues to be between $563 million and $578 million, indicating a 2.5% to 5.2% year-over-year growth. For 2026, JOYY anticipates steady growth in its livestreaming business and robust double-digit growth in its ad tech and SaaS sectors, driven by strategic expansions and enhanced AI capabilities.

In summary, JOYY Inc.’s recent earnings call reflects a company in a strong position, with significant growth in key areas and a positive outlook for the future. The company’s strategic initiatives and financial health suggest continued success and value for shareholders.